22nd Sep 2016 09:43
LONDON (Alliance News) - Prospex Oil & Gas PLC on Thursday said its pretax loss was much wider in the first half of the year despite a material reduction in costs as it looks toward the end of the year when it drilling will begin on the Kolo licence onshore Poland.
Prospex acquired a 49% stake in Hutton Poland, the firm that owns the Polish licence, during the first half of the year and the focus moving forward is solely on that asset, where the fully-funded Boleshaw prospect will be drilled in the final quarter of this year.
Boleshaw has a gross best estimate resource of 87.00 billion standard cubic feet of gas. The net present value range for the stake held by Prospex is USD44.0 million to USD95.0 million and the risked valuation range net to the business is between GBP5.0 million to GBP8.4 million.
"With contractors secured drilling operations at the first target, Boleslaw-1 exploration well, are on course to commence in the fourth quarter of 2016, which we believe on its own, has the potential to re-rate our valuation. This is the first of a number of targets on the licence area which are prospective and Hutton Poland remain focused on achieving milestones at Boleslaw," said Managing Director Edward Dawson.
"At the same time we continue to explore other opportunities that we believe will allow us to deliver on our wider strategy to invest in high impact European opportunities with short timelines to production in the coming months and years ahead," he added.
Unsurprisingly, Prospex reported a pretax loss of GBP198,163 in the first half of 2016, comparable to the GBP105,291 loss last year. Administrative costs fell to GBP198,163 from GBP257,814 but the fall was offset by the absence of a GBP152,361 gain that was booked last year on the back of a restructuring effort.
Prospex shares were up 7.4% to 1.82 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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